Wall Street Week Ahead | Seeking Alpha

Welcome to the Sunday edition of Wall Street Breakfast, which previews events for investors to watch during the upcoming week. If you want to receive this a day earlier, follow Stocks to Watch and select the option to receive email notifications.

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Wall Street will gear up for jobs week, with market participants set to receive a host of indicators at a time when the Federal Reserve has cut interest rates, citing increased downside risks to the labor market.

On Tuesday, August job openings data will arrive, followed by private employment figures on Wednesday. The main highlight of the week will be the September nonfarm payrolls report on Friday. Traders will be closely watching out for further signs of weakness in the labor market.

Aside from the economic calendar, investors will also have some earnings to look forward to this week, including the latest quarterly report from the world’s largest shoe company, Nike (NKE).

Earnings

Earnings spotlight: Monday, September 29: Carnival Corp. (CCL), Jefferies Financial (JEF), IDT (IDT). See the full earnings calendar.

Earnings spotlight: Tuesday, September 30: Nike (NKE), Paychex (PAYX), Lamb Weston Holdings (LW). See the full earnings calendar.

Earnings spotlight: Wednesday, October 1: Acuity Inc. (AYI), Conagra Brands (CAG), Cal-Maine (CALM), Rezolve AI (RZLV). See the full earnings calendar.

Earnings spotlight: Thursday, October 2: AngioDynamics, Inc. (ANGO). See the full earnings calendar.

Michael Kramer is the founder of Mott Capital and is a long-only investor who focuses on macro themes, trends, and options activities to identify and assess entry and exit points for investments in his long-term thematic growth strategy. He leads the Investing Group, Reading The Markets, where he’s been telling his members the following:

“The calls for rate cuts continue to grow from many Fed officials, but with economic data showing second-quarter GDP expanding at 3.8% and the Atlanta Fed’s GDPNow tracking third-quarter growth at 3.3%, it’s hard to argue that the U.S. economy is in dire need of additional easing. One reason the Fed may still feel compelled to cut is the bond market, which has left it little choice. With the yield curve so flat, investors have little incentive to take on long-duration Treasuries. As of September 25, the spread between the 10-year Treasury and the 3-year bill was just 20 basis points. The market has essentially forced the Fed’s hand to cut rates in order to steepen the curve.”

“This sets up the potential ‘pain trade’ into year-end: higher rates, a stronger dollar, and weaker risk assets. As the curve re-steepens, it coincides with peak complacency in the stock market, where both implied and realized volatility remain extremely low. This dynamic has been highlighted with members of Reading The Markets in recent weeks, and at this point, we’ve been waiting for the event to unfold. Many pieces are already in place, and it seems the Fed may have just lit the fuse needed to set the process in motion.”

For more on Michael’s latest take on the macro picture, continue reading with these two free-to-read pieces:

• Fed Cuts Could Spark A Surge In The 10-Year Yield
• The Market Setup Has Rarely Been This Treacherous

To gain access to Michael’s daily market set-ups, key asset class entry and exit points, and a great community in chat, join Reading The Markets today – currently 15% off for new subscribers.

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